What Are the Regulations for Utah Title Loans?
The Utah Home Loans Act pegs the interest rate of car title loans at a maximum of 30%. For loans between $2,000 to $3000, the rate is 24%, while loans above $3000 come with an interest rate of 18%. Notwithstanding, some lenders may charge a commission and further drive the APR up a bit.
The maximum loan term is 30 days. However, a loan extension is available if the borrower is unable to pay after 30 days. Lenders are also restricted from charging a prepayment penalty, so you can choose to pay earlier without consequences.
Finally, if you default on your loan even after the expiration of the extension, the lender is entitled to take your car and sell it off. However, you’ll get a notification ten days before the sale, allowing you to make a final payment to redeem your vehicle.
What Do You Need When Getting Title Loans in Utah
Below are some of the major documents that lenders in Utah may request before offering you auto title loan services.
- A car title under your name (This document serves as the collateral for your title loan, so it is expected that the title is free of liens and existing charges)
- Photos of the car
- Proof of vehicle registration and insurance
- A government-issued photo ID
- Proof of stable income or employment
- Proof of Utah residence
In addition, you will be requested to present your car for inspection.
Is It Possible to Get Title Loans with Bad Credit in Utah?
Fortunately, it is possible to get top title loans even if you have a bad credit score. Most lenders look beyond your credit history and prioritize your ability to repay the loan. Besides, the loan is given with your car title as security. So, lenders have enough incentive to give bad credit loans.
When getting loans for bad credit, many lenders in Utah require you to provide proof of income. This may come in the form of paychecks from your employment or social security. While bad credit loans are available, it is important to know that borrowers with good credit generally get better loan offers.
At WeLoans, most of our partner title loan lenders are willing to offer auto title loans to bad credit applicants. Simply fill out our online application form to get started.
Reasons Why Your Utah Title Loans Were Declined
It’s not uncommon to see title loan applications rejected. Here are some of the reasons a lender may deny your title loan request.
Low Car Value
Usually, the value of your car determines how much loan you are eligible to receive. So, if, after inspection, your car’s worth is lower than the amount you wish to borrow, your application may be declined.
Invalid Car Title
The car title must be in your name for it to be valid. Other paperwork you provide must also match the name on the car title. Furthermore, it is important that there is no lien or existing equity on the car title.
Inability to Provide Repayment Capacity
If you cannot show a stable source of income, you will be deemed unable to repay, and your application will be rejected. That’s why you should provide proof that you’re employed or earn income from benefits.
